Comfortable Feathers

Following is a summary of the factors for 1990 - 1998.

Dominating Factors

1990 – 1991

• Recession
• The Gulf War
• Spike in oil prices
• Consumers lose confidence
• Bush – “No new taxes…” however, taxes were raised
• 17% of population moves residence

1992

• “Reverse snob appeal”
• Federal budget peaks
• “Discouraged worker” effect (peak of unemployment)
• Additional cash from mortgage refinancing

1993

• Consumer price inflation down 3%
• Saving and loan scandal costs the government $150 billion
• Higher high school drop out rate, lower employment prospects

1994

• Population up 22 million since 1990
• NAFTA enacted
• Income for advanced degree is 50% high than a bachelor’s degree

1995

• 31% of population is 25 – 44 years old (largest percent of total population)
• Clinton loans $20 trillion to Mexico
• WTO created

1996

• Baby Boomers shift buying focus
• Globalization growing
• 81.7% of population has completed high school
• Internet sales increasing

1997

• Personal incomes increase, consumer debt increases
• Consumer confidence at an all time high

1998

• Holiday shopping online calculated at $3.5 billion
• Osama bin Laden attacks two U.S. embassies

Hidden Factors

• "Discouraged worker" effect (unemployment continued to peak)
• Bush raises taxes in 1990, even though he said he wouldn't
• Savings and Loan Scandal costs the government $125 billion
• Baby Boomer's interests begin to change to housing, travel, etc